The Person Who Recommended That Product May Have Been Breaking the Law

The Recommendation You Trusted May Have Been Bought

You saw a YouTube video. A blogger wrote a glowing review. Someone in a Facebook group mentioned a product that changed their life. You bought it. It didn't work.

What you probably didn't know: that person may have been paid to recommend it. And they may not have told you.

Under UK, US and EU law -that is illegal.

What the Law Requires

United Kingdom -ASA and CMA Rules

The ASA CAP Code and the CMA's guidelines on online reviews require that any material commercial relationship between an advertiser and a person promoting their product must be clearly disclosed.

This includes:

• •Being paid to review a product
• •Receiving a free product in exchange for coverage
• •Earning commission on sales through an affiliate link
• •Having any financial relationship with the brand

The disclosure must be prominent and clear -not buried in a caption, not hidden below a fold, not in a hashtag list where it blends in.

United States -FTC Endorsement Guides

The Federal Trade Commission's Endorsement Guides require that any material connection between an endorser and an advertiser is "clearly and conspicuously disclosed."

The FTC has specifically stated that disclosures like "#collab," "#partner" or a generic "#ad" buried among other hashtags do not meet the standard. The disclosure must be hard to miss.

In 2023, the FTC updated its guidance to explicitly cover AI-generated endorsements and algorithm-driven recommendations -expanding the disclosure requirement significantly.

European Union -DSA and UCPD

The Digital Services Act and the Unfair Commercial Practices Directive both require that paid or incentivised content is clearly identified as advertising before a consumer engages with it. This applies to influencers, affiliates, comparison sites and review platforms operating in or targeting EU consumers.

The Specific Practices That Are Illegal

Affiliate Links Without Disclosure

If someone includes a link to a product and earns commission when you click and buy -without telling you they earn commission -that is an undisclosed material connection. It is illegal under FTC rules and UK Consumer Protection Regulations.

Free Product Reviews Without Disclosure

If a reviewer received a product free of charge in exchange for coverage -even if they weren't paid cash -they must disclose it. "I received this product for free to review" is required. Failing to say so is a violation.

Paid Social Media Posts Without Labels

Instagram, TikTok and YouTube posts that are paid promotions must be clearly labelled as such before a viewer engages with the content -not at the end, not in small print, not in a hashtag group.

Comparison Sites Ranked by Commission

Price comparison and review sites that rank products by commission rate rather than objective criteria -without disclosing this -are operating illegally under CMA guidelines issued in 2021.

Why "Organic" Reviews Are Often Anything But

The course creator space, supplement industry, software market and online education sector all rely heavily on affiliate marketing. Commission rates of 30% to 50% are common. A single high-ticket course sale can earn an affiliate hundreds of pounds.

This creates a powerful financial incentive to recommend products -and a powerful incentive not to disclose it, because disclosed ads convert worse than organic-looking recommendations.

The result: a large proportion of online recommendations you encounter are paid. Many are undisclosed.

What To Do If You Were Misled by an Undisclosed Paid Endorsement

1. Check for disclosure -look carefully at the content. Is there a clear #ad, #sponsored, or "paid partnership" label? Is the affiliate relationship disclosed in the first line?

2. Report to the ASA -UK consumers can report undisclosed advertising at asa.org.uk. The ASA investigates and publishes rulings.

3. Report to the FTC -US consumers can report at reportfraud.ftc.gov.

4. Chargeback if misled -if you purchased a product based on what turned out to be an undisclosed paid endorsement, and the product didn't match what was implied, you may have grounds for a chargeback with your card provider on the basis of misrepresentation.

Before You Buy: Check the Sales Page

Red Flag AI Pro scans sales pages and marketing copy for fake reviews, undisclosed endorsements and misleading testimonials -alongside income claims, fake urgency, hidden fees and 12 other risk categories.

Paste any sales page, course landing page or promotional email into the scanner before you buy. Free. No account needed.